iSatori, Inc. Reports Third Quarter Operating Results

GOLDEN, CO--(Marketwire - Nov 9, 2012) - iSatori, Inc. (OTCQB: IFIT), an emerging leader in the development and marketing of scientifically engineered nutritional supplements for healthier lifestyles, announced its operating results for the third quarter and first nine months of 2012 today. A summary of these results is provided in the following table. A complete report of the Company's operating results will be filed later today with the Securities and Exchange Commission on Form 10-Q.

The Company's product revenue improved slightly (net of returns and discounts) during the nine months ending September 30, 2012, to $6.99 million, compared with $6.97 million in the first nine months of 2011. Income (loss) from continuing operations declined from $529,000 in the first nine months of 2011 to a loss of ($243,000) in the first nine months of 2012. However, when the extraordinary gain on the divestiture by the Company of its dormant product line of children's vitamins (approximately $500,000) and merger costs ($562,000) in connection with the Company's merger into the "shell" corporation, Integrated Security Systems, Inc., are excluded, the Company's recorded 2012 restated (non-GAAP) nine-month pretax loss of ($181,000) compared with restated pretax income of $529,000 in the first nine months of 2011.

Third quarter product revenue (net of returns and discounts) declined 17% from $2.815 million in the three months ending September 30, 2011 to $2.349 million in the comparable 2012 period. The Company's income (loss) from continuing operations for the 2012 third quarter of ($517,000) compared with a loss from continuing operations in the 2011 third quarter of ($44,000).

"Our third quarter results were impacted by planned increases in Internet product marketing costs, as well as higher than expected professional fees," noted Stephen Adelé, Chief Executive Officer of iSatori. "We continue to strategically deploy the working capital procured through our merger with IZZI into projects that should benefit operating results as we move into 2013 and prepare our Company for entry into the Mass Market retail channel."

In related news, iSatori confirmed it is in the process of procuring an initial stocking order for its newly reconstituted energy product, Energize™, from Walgreens, a Fortune 500 company and the largest drug retailer in the United States. Walgreens, a major mass merchandiser with over 8,300 retail outlets, distributes a variety of consumer goods, including nutritional supplements and energy products. iSatori anticipates receiving an initial stocking order before the end of the year from Walgreens. Other terms and conditions regarding this potential commercial relationship may be publicly disclosed if and when the commercial relationship matures.

The Company also announced it will be presenting at the LD Micro Conference (http://www.ldmicro.com/) at the Luxe Hotel in Los Angeles, California, on December 5, 2012. iSatori will join over 130 small- and micro-cap companies invited to present at the conference, which is expected to attract over 600 investment professionals and institutional investors from around the world. Additional details on the LD Micro Conference will be forthcoming in a later news release.

iSatori, Inc.

Summary of Third Quarter and Nine-Month Results

for Calendar Years 2011 and 2012 ($000)

Third Quarter Ended Sept. 30

Nine Months Ended Sept. 30

2012

2011

2012

2011

Product revenue (Net of returns and discounts)

$2,349

$2,815

$6,990

$6,970

Income (loss) from operations

($428)

$76

($136)

$722

Income (loss) from continuing operations

($517)

($44)

($243)

$529

Less: Divestiture Gain1

n/a

n/a

($500)

n/a

Less: Merger Costs2

n/a

n/a

$562

n/a

Restated Income (loss) from continuing operations3

($517)

($44)

($181)

$529

1)

Includes gain on sale of Company's dormant product line of children's vitamins.

iSatori, Inc. is a consumer products firm which develops and sells nutritional products in the performance, weight loss, and energy markets through online marketing, Fortune 500 retailers, and thousands of retail stores around the world. More information about the Company is available at www.iSatori.com.

Statements made in this news release relating to the Company's future sales, expenses, revenue, product developments, and all other statements except statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the timing and extent of changes in demand for the Company's products, the relationships with our distributors, the results of our marketing efforts, entrance into mass market retail distributors, the availability and price of ingredients necessary to manufacture such products, and the outcome of any current or future litigation regarding such products or similar products of competitors. All forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update any such statement.